Good news, bad news in state employment report

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Indiana’s unemployment rate is now the lowest it’s been since September 2008, but House Minority Leader Scott Pelath, D-Michigan City, said officials need to “take a longer look before gushing praise.”

According to the Department of Workforce Development in a report issued Monday, Indiana’s seasonally adjusted unemployment rate dropped 0.4 percentage points, to 6.4 percent, in January. That is lower than all neighboring states and 0.2 percentage points below the national average.

“Every Hoosier should be encouraged by today’s unemployment numbers, which show the largest one-month drop in unemployment in 20 years,” Gov. Mike Pence said in a prepared statement. “Indiana’s rate is now lower than the national average, and our labor force and population continue to grow.”

The Hoosier state added 4,600 jobs in the manufacturing sector in January, the most in the country. But Indiana also lost 7,100 private sector jobs, leaving the state at a net loss of 2,500 jobs for the month.

“While others may gush about ‘the largest one-month drop in unemployment in 20 years,’ I look at the report and find myself wondering many things,” Pelath said.

He noted all but one of the state’s metropolitan statistical areas – and 82 of the 92 counties – actually saw unemployment rise in January.

“These disparities only serve to heighten the concern that many of us have about the so-called ‘job creation’ engine that the governor, his administration, and his super-majorities like to tout so often,” Pelath said.

But Jerry Conover, director of the Indiana Business Research Center, said it is still too early to gauge the effectiveness of the recent administration’s job-creation strategies.

He said the Hoosier economy is closely tied to the national economy so these numbers may be result of the general economic upswing throughout the country.

But Conover also said Indiana has a “well-deserved” reputation as a business-friendly state. The legislature recently passed a bill that will give Indiana the lowest corporate tax rate in the country.

The lowering of the business personal property tax was one of the landmark items of the Pence agenda.

“With this legislative session’s accomplishments in cutting the corporate income tax rate, giving counties new tools for reforming the business personal property tax, and offering new opportunities for career education and retraining, we continue to work hard to ensure the future economic prosperity of our state,” Pence said.

The DWD – along with the U.S. Federal Reserve – cited January’s severe winter weather as one of the main reasons for a loss of jobs around the country.

Conover agreed with the assessment and noted that more than 9,000 jobs were lost in the areas of trade, transportation and utilities, and construction alone.

But that explanation was not enough for Pelath.

“People can talk about seasonal adjustments all they want, but I continue to be concerned about the raw employment and unemployment numbers,” he said. “Those tell me who has a job and who is able to take care of their family.”

Pence agreed that there is still more work to be done.

“Amidst this good news, we know that unemployment numbers are not a complete measure of the health of the economy,” he said. “Too many Hoosiers are still struggling, which is why we need to continue pushing to improve Indiana’s economic climate, to attract more jobs, and to make sure Hoosier workers have the skills they need for the jobs of the future."


  • Jobs loss is the key point
    I don't know anything about the House Minority Leader, and I don't speak for him, but if the state had a net loss of 2,500 jobs for the month as the story reports, it makes you wonder why the unemployment rate went down .4 points, and whether that is something to celebrate. Unless we lost population, it would have to mean that less people are working and less people are looking for work. If people have quit looking because they've retired, are staying home with kids, or hit the lottery, then the drop would be good news. If it's due to people giving up on looking for work or working in "under the table" arrangements in which no payroll taxes are collected, that is not good news for the state. Who can answer the real question of why the unemployment rate dropped at the same time we had a net loss of jobs?
  • good news bad news
    Mr. Pelath's comments are why so many are turned off by politicians. So, unemployment in Indiana, with a lower rate than the national rate, is the Republican's fault but, nationally, I'll just bet that the unemployment rate is not Obama's. Does he think we are all that stupid or just the ones who vote Democrat?
  • wonder why democrats dont have any power
    Look no further than the constant whining and crying the minority leader is doing. Then democrats act surprised at why Republicans have a super majority in the state legislature. Pat bauer is another pathetic slimeball.

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  1. How much you wanna bet, that 70% of the jobs created there (after construction) are minimum wage? And Harvey is correct, the vast majority of residents in this project will drive to their jobs, and to think otherwise, is like Harvey says, a pipe dream. Someone working at a restaurant or retail store will not be able to afford living there. What ever happened to people who wanted to build buildings, paying for it themselves? Not a fan of these tax deals.

  2. Uh, no GeorgeP. The project is supposed to bring on 1,000 jobs and those people along with the people that will be living in the new residential will be driving to their jobs. The walkable stuff is a pipe dream. Besides, walkable is defined as having all daily necessities within 1/2 mile. That's not the case here. Never will be.

  3. Brad is on to something there. The merger of the Formula E and IndyCar Series would give IndyCar access to International markets and Formula E access the Indianapolis 500, not to mention some other events in the USA. Maybe after 2016 but before the new Dallara is rolled out for 2018. This give IndyCar two more seasons to run the DW12 and Formula E to get charged up, pun intended. Then shock the racing world, pun intended, but making the 101st Indianapolis 500 a stellar, groundbreaking event: The first all-electric Indy 500, and use that platform to promote the future of the sport.

  4. No, HarveyF, the exact opposite. Greater density and closeness to retail and everyday necessities reduces traffic. When one has to drive miles for necessities, all those cars are on the roads for many miles. When reasonable density is built, low rise in this case, in the middle of a thriving retail area, one has to drive far less, actually reducing the number of cars on the road.

  5. The Indy Star announced today the appointment of a new Beverage Reporter! So instead of insightful reports on Indy pro sports and Indiana college teams, you now get to read stories about the 432nd new brewery open or some obscure Hoosier winery winning a county fair blue ribbon. Yep, that's the coverage we Star readers crave. Not.